TABLE 6

Determinants of Area Rented-in and Rented-out (Tobit Model Results)

Area Rented-inArea Rented-out
Farming ability0.652** (2.01)-0.184 (0.23)
Log of adult equivalents1.161*** (3.37)1.190*** (3.40)-1.145 (1.64)-1.321** (1.97)
Log of acres owned-0.151** (2.13)-0.136** (2.00)0.281** (2.16)0.247* (1.73)
Credit constrained ( = 1)- 0.239 (0.32)-0.195 (0.26)8.218 (1.36)8.205 (1.61)
Log of rental rate0.311 (0.78)0.334 (0.83)1.129 (1.00)1.166 (1.02)
Log of agricultural assets0.496*** (3.36)0.523*** (3.50)- 1.025** (2.47)-0.834* (1.90)
Log of household head’s age- 1.939*** (3.02)- 1.842*** (2.84)-1.166 (0.82)- 0.931 (0.62)
Household head completed primary school ( = 1)-0.354 (1.02)- 0.346 (0.99)0.769 (0.73)0.934 (0.87)
Female-headed household ( = 1)- 1.249*** (3.37)- 1.267*** (3.36)0.291 (0.31)0.183 (0.19)
Distance to extension service0.038 (0.76)0.039 (0.77)- 0.079 (0.85)- 0.070 (0.77)
Death of household head since prior survey ( = 1)-0.211 (0.25)-0.173 (0.21)- 1.508 (0.65)- 1.529 (0.66)
Distance to main road-0.347* (1.65)-0.349 (1.60)0.389 (1.27)0.404 (1.32)
Population density-0.502 (1.53)-0.483 (1.48)-0.016 (0.02)- 0.032 (0.57)
Log of rainfall0.024 (0.01)-0.032 (0.01)- 12.992 (1.59)-13.149 (1.58)
Log of rainfall last year2.074 (1.05)2.149 (1.07)4.080 (0.86)3.856 (0.80)
Distance to nearest piped water source0.003 (0.08)0.003 (0.09)-0.042 (0.51)- 0.032 (0.39)
Distance to the nearest electricity supply-0.016 (0.18)-0.017 (0.20)- 0.033 (0.38)0.013 (0.15)
Observations1,1701,1711,1701,171
  • Note: Robust t-statistics in parentheses. Area rented-in and area rented-out are available only for the last panel period.

  • ↵* Significant at 10%;

  • ↵** Significant at 5%;

  • ↵*** Significant at 1%.